What is the difference between assessed value and equalized value?
State law recognizes that every municipality cannot be assessed exactly at market value each year. The law only requires that any given municipality assess all its major classes (residential and commercial) within 10 percent of market value once in any 5 year period, so long as there is equity in assessments within that municipality. Thus, because assessment ratios to market value can vary between cities, towns, and villages, it is necessary for the Department of Revenue to convert the assessed values for each jurisdiction within a county to a uniform level. These uniform values are called equalized values because all the various local levels of assessment have been equalized or converted to equal 100 percent of market value. The equalized values are used for apportioning county property taxes, public school taxes, vocational school taxes, and for distributing property tax relief.
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